AppLovin stock (APP) is set to report its third-quarter results on Wednesday, November 5, after the market closes. Ahead of the release, Top Deutsche Bank analyst Benjamin Black began coverage with a Buy rating and a $705 price target, implying nearly 28% upside from current levels.
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The 5-star analyst, ranked 422 out of over 10,000 analysts tracked by TipRanks, called AppLovin the “dominant player” in mobile game advertising. He said the company has built “best-in-class” ad technology that improves as it scales, making it hard for competitors to match.
Why This Top Analyst Sees More Upside Ahead
Black said AppLovin stands out as one of the cheapest digital ad stocks based on its growth outlook. He highlighted the company’s AI-powered Axon model, which performs well across different industries and is now expanding beyond gaming into e-commerce ads—a market several times larger than mobile gaming.
According to Deutsche Bank, even a 5%–10% share of new e-commerce ad spending could help AppLovin beat 2027 sales estimates. The bank also expects e-commerce campaigns to raise conversion rates and draw in more advertisers, helping the company diversify its revenue base.
Black added that AppLovin’s revenue has grown at a 68% annual rate over the past three years, with “virtually no extra costs,” showing the strength of its ad tech system. He believes the company’s size, efficient AI tools, and entry into e-commerce give it a clear edge over rivals like Unity Technologies (U) and support Deutsche Bank’s bullish view on the stock.
Is APP a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on AppLovin stock based on 17 Buys and three Hold recommendations. The average APP stock price target of $676.50 indicates about 20% upside potential.
